My understanding is I need two years of tax returns reflecting my own business. I started my business two years ago, so 2021 will be my second year. I've been patiently waiting to refi, but tax return filing and rate changes are converging. Is there a way to refi based on 2020 tax return and 2021 business income to date?

Yep, absolute kick in the nuts over and over. We had record gross income, from multiple streams, last year but didn't pay ourselves a dime more than we legally had to and all we heard time and time again is that we didn't have enough income on paper to re-fi our primary residence. A multifamily house that pays for itself and then some.

This year we are going to have our lender work with our accountant to ensure we pay ourselves enough to get the refi done. It's been stressful waiting on all this knowing lending and markets can change at any second.

Another example of a broken process. I don't really want to pay more taxes by paying myself too much. I guess that's an added piece to the puzzle.

Thank you!

Yup. Have a W2 showing 100K income makes for a quick qualification. Own your own business, make 10X as much, self employed with 1099/K1s and its jumping through many hoops.

You can get it done, just more paperwork and sometimes letter from your CPA/CFO verifying income.

Middle of doing it now. I'm Self employed, wife is self employed. Have 3 years of mine, only one on hers. 1st year showed a loss (big surprise) with the startup costs on hers. Threw the underwriters all into a tizzy. Didn't seem to matter that we are debt free aside from the house, net over $125k a year, have been in the same industry for 8 years, just recently doing it ourselves.

Going to need a P&L for this year for sure. Get ready for stupid type of questions.

That's the biggest frustration of the whole thing. I pay my CPA to make things look extra good for tax purposes. It's a direct opposite of what his mortgage guys look for.

Blows my mind that even paying down a substantial amount of homes value and assets the bank won't loan to you. I am self employed, but don't have two full years. Nightmare.

I've been fighting that battle for 20 years. CPAs carve up the income and leave me the scraps. There are few more responses I have but I'll have to come back on a PC so I can type

SteveBott said:

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I've been fighting that battle for 20 years. CPAs carve up the income and leave me the scraps. There are few more responses I have but I'll have to come back on a PC so I can type

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Looking forward to hearing more.

We have 12 month bank statement only loans for purchases that don't require tax returns, but not for cash out refinances unfortunately. Rates are not as low as conventional rates, but rates relative to historical rates are still very reasonable. I am a loan officer with 35+ years in the industry. Glad to help if interested. Bbazar@rpm-mtg.com NMLS 1969754